Economic Theory

Samir Amin is director of the Third World Forum in Dakar, Senegal. His books published by Monthly Review Press include The Liberal Virus, The World We Wish to See, The Law of Worldwide Value, and, most recently, The Implosion of Contemporary Capitalism. This article was translated from the French by Shane Mage. 1. Let me begin by saying that I […]… | more |

Many people think of cooperatives as small, locally owned businesses, such as groceries, cafes, or bicycle shops, where people can work in an equal and participatory non-capitalist organization. In reality, the U.S. co-op movement is tied to federal agencies whose agenda is promoting neoliberalism, both domestically and abroad, and the co-op movement itself has neoliberal leaders. Many co-ops in name are profit-driven capitalist corporations in practice. And even in the abstract, the co-op principles of smaller co-ops enable neoliberal cooperative politics. All of this, however, raises the question of what a co-op based on socialist values would be, and China’s Nanjie village provides a living example of that.… | more |

Clarifying what Karl Marx thought of the role of cooperatives is useful, not to receive the “correct” answer to what that role will be, but to help think through what alternatives answers might be and how they might color today’s expectations of the cooperative movement. If one sees a non-capitalist or socialist organization of society as ultimately desirable, then how should we answer the following questions in the present day: (1) Are co-ops in production, worker-owned enterprises, desirable experimental improvements to the organization of production over standard capitalist practices, in the direction of immediate social welfare? (2) Are such co-ops in production also little islands of a different future, models of socialism within a capitalist society? (3) Are they beachheads of socialism, politically practical steps along the road to bringing forth such a possible alternative society? (4) Will they ultimately also be the foundations of such a society, if it develops? (5) All in all, what is their importance, their role, in daily struggles?… | more |

This 51st annual Socialist Register completes the investigation of class formation and class strategies on a global scale begun with last year’s volume. Deploying an understanding of class as an historical social process—rather than an abstract sociological category or statistical artifact—the essays here investigate the concrete ways that working classes are being made and remade in the struggles against neoliberalism, austerity, and authoritarian governments. Taking stock of the changing balance of class forces as well as old and new forms of workplace, household and political organization, they uncover the class strategies being debated and adapted in different zones of the world.… | more |

Ursula Huws ties together disparate economic, cultural, and political phenomena of the last few decades to form a provocative narrative about the shape of the global capitalist economy at present. She examines the way that advanced information and communications technology has opened up new fields of capital accumulation: in culture and the arts, in the privatization of public services, and in the commodification of human sociality by way of mobile devices and social networking. These trends are in turn accompanied by the dramatic restructuring of work arrangements, opening the way for new contradictions and new forms of labor solidarity and struggle around the planet.… | more |

On September 20, 2014, while corporate and government officials arrived in New York City for the UN Climate Summit, organizers and activists from around the world participated in a peoples’ summit called the NYC Climate Convergence (organized by the Global Climate Convergence and System Change Not Climate Change). The NYC Climate Convergence featured as the lead keynote speaker Naomi Klein, who presented the analysis of her new book, This Changes Everything: Capitalism vs. the Climate (Simon and Schuster, 2014). Her concluding chapter, significantly, is entitled “Leap Years: Just Enough Time for the Impossible.” Monthly Review readers will be interested that Klein observes in her book: “Karl Marx… recognized capitalism’s ‘irreparable rift’ with the ‘natural laws of life itself’”. Later she refers to “global capitalism’s voracious metabolism”.… | more |

Not since the Great Depression of the 1930s has it been so apparent that the core capitalist economies are experiencing secular stagnation, characterized by slow growth, rising unemployment and underemployment, and idle productive capacity. Consequently, mainstream economics is finally beginning to recognize the economic stagnation tendency that has long been a focus in these pages, although it has yet to develop a coherent analysis of the phenomenon. Accompanying the long-term decline in the growth trend has been an extraordinary increase in economic inequality, which one of us labeled “The Great Inequality,” and which has recently been dramatized by the publication of French economist Thomas Piketty’s Capital in the Twenty-First Century. Taken together, these two realities of deepening stagnation and growing inequality have created a severe crisis for orthodox (or neoclassical) economics.… | more |

Secular stagnation (or the trend towards long-term slow growth and continuing high unemployment/underemployment) has become a big issue in the mature economies since 2013, when former U.S. Treasury Secretary Larry Summers raised the question at an IMF economic forum. Compilations of work on the subject can now be found on the Internet, such as the one by economists Coen Teulings and Richard Baldwin; which however leaves out all contributions by heterodox economists. Teulings and Baldwin credit Summers with having “resurrected” the secular stagnation issue. But is this true? Only in the sense that he reintroduced it to mainstream neoclassical economics. It has long been a topic on the left, and particularly in Monthly Review, where editor Paul Sweezy explicitly drew attention to the “secular stagnation” question more than forty years ago—with MR tracking the stagnation trend month by month in the four decades that followed.… Isn’t it about time…that orthodox economists, Summers included, began to acknowledge the enormous work done on this topic on the left over decades, and indeed the greater complexity and historicity of the analysis to be found there—not only in MR but within heterodox economics more generally? Such an admission might even do orthodox economists some good.… | more |

In this provocative study, economist Ernesto Screpanti argues that imperialism—far from disappearing or mutating into a benign “globalization”—has in fact entered a new phase, which he terms “global imperialism.” This is a phase defined by multinational firms cut loose from the nation-state framework and free to chase profits over the entire surface of the globe. No longer dependent on nation-states for building a political consensus that accommodates capital accumulation, these firms seek to bend governments to their will and destroy barriers to the free movement of capital. And while military force continues to play an important role in imperial strategy, it is the discipline of the global market that keeps workers in check by pitting them against each other no matter what their national origin. … | more |

John Bellamy Foster is a leading exponent of the theoretical perspective that continues in the tradition of Baran and Sweezy’s Monopoly Capital. This new edition of his essential work, The Theory of Monopoly Capitalism, is a clear and accessible explication of this outlook, brought up to the present, and incorporating an analysis of recently discovered “lost” chapters from Monopoly Capital and correspondence between Baran and Sweezy. It also discusses Magdoff and Sweezy’s analysis of the financialization of the economy in the 1970s, ‘80s, and ‘90s, leading up to the Great Financial Crisis of the opening decade of this century.… | more |

Many Australians view themselves as living in a “lucky country” because it has an abundance of mineral resources. James Goodman and David Worth, however, maintain that the mining boom has been a “curse” in disguise. It has sharpened socioeconomic and community divisions, contributed to political conflict, and resulted in “ecological mal-development” with serious environmental consequences. This applies to coal in that it not only contributes to air and water pollution, but is also a major source of carbon dioxide emissions and thus a major contributor to climate change.… | more |

These essays by the author of The Political Economy of Growth and co-author of Monopoly Capital cover the working range of a strong and original mind. They are as diverse as his well-known discussion of Marxism and psychoanalysis, and his expert handling of the politics and economics of development.… | more |

Value and Crisis opens with a long and highly informative essay on the development of Marxian economics in Japan, and contains a number of the author’s important and original contributions to this stream of thought. Itoh discusses the major points of view on Marx’s theory of value, on theories of crisis, and on problems of Marx’s theory of market value. … | more |

Social inequalities and exclusions can devastate people’s lives, especially when they are far from the centers of power and control. This wreckage can be seen in many different parts of their lives, but particularly in their health. The health of any given country’s population is primarily determined by politics, and public policies play a critical role. All over the world, countries with a history of egalitarian ideologies, and corresponding policies aimed at reducing social inequalities, have healthier populations. The Indian state of Kerala, which has a long-running radical political tradition and a history of social-reform movements in the early twentieth century, is acclaimed for its achievements in health and social-sector development, including low levels of mortality and fertility, and high levels of life expectancy and literacy—all despite its low-performing economy. Kerala has become a veritable mecca for other low-income nations in social development and health advancement.… | more |

In the past two decades, China’s economic growth has been increasingly dependent on investment. To maintain the growth of investment, China must sustain a fairly high rate of profit, and the fall in labor’s share has been seen as a crucial factor to sustain profitability.… Although the mainstream economists have widely admitted there is a downward trend for labor’s share in China, they explain this trend with a story that has nothing to do with class struggle. In this story, the decline of labor’s share is caused by sectoral changes, mainly the decrease of agriculture and the increase of industry and services as a percent of GDP in the reform era…. [But] Does the decline of labor’s share result from sectoral changes?… [In fact] the decline of labor’s share resulted from the loss in the power of the working class during the transition to capitalism. Sectoral changes have disguised the class conflicts in this historical process.… | more |

Acute economic and political drama mark contemporary Europe. The terrible trauma of the financial crisis has been followed by a sovereign-debt disaster. In the countries most deeply affected, the people have been faced with massive attacks on public services, wages, pensions, trade unions, and social rights. The draconian austerity policies have pushed the situation in those countries from bad to worse, leading them into a deep depression.… Confronted with these multiple crises, the traditional labor movements appear perplexed and partly paralyzed. Social democracy is in political and ideological disarray and confusion, reflecting a deep crisis in these movements. On the one hand, social democrats have played a leading role in fierce attacks on trade unions and the welfare state in countries where they have been in power. On the other hand, other social democrats adopt statements and support appeals that sharply condemn the political course now followed by the European Union.… | more |

The rediscovery over the last decade and a half of Marx’s theory of metabolic rift has come to be seen by many on the left as offering a powerful critique of the relation between nature and contemporary capitalist society. The result has been the development of a more unified ecological world view transcending the divisions between natural and social science, and allowing us to perceive the concrete ways in which the contradictions of capital accumulation are generating ecological crises and catastrophes.… Yet, this recovery of Marx’s ecological argument has given rise to further questions and criticisms.… | more |

In this slim, insightful volume, noted economist Samir Amin returns to the core of Marxian economic thought: Marx’s theory of value. Amin defends Marx’s theory of value against its critics and also tackles some of its trickier aspects. He examines the relationship between Marx’s abstract concepts—such as “socially necessary labor time”—and how they are manifested in the capitalist marketplace as prices, wages, rents, and so on. He also explains how variations in price are affected by the development of “monopoly-capitalism,” the abandonment of the gold standard, and the deepening of capitalism as a global system.… | more |

Renowned political economist Samir Amin, engaged in a unique lifelong effort both to narrate and affect the human condition on a global scale, brings his analysis up to the present—the world of 2013. The key events of our times—financial crisis, the emerging nations, globalization, financialization, political Islam, Euro–zone implosion—are related in a coherent, historically based, account. … | more |

It is an indication of the sheer enormity of the historical challenge confronting humanity in our time that the worst economic crisis since the Great Depression, sometimes now called the Second Great Depression, is overshadowed by the larger threat of planetary catastrophe, raising the question of the long-term survival of innumerable species—including our own. An urgent necessity for the world today is therefore to develop an understanding of the interconnections between the deepening impasse of the capitalist economy and the rapidly accelerating ecological threat—itself a by-product of capitalist development.… | more |